In a bid to curb excessive government expenditure and allocate resources to other pressing needs, the Ugandan government has made the decision to halt the purchase of new cars for government agencies in the 2019/20 financial year. This announcement was made by Kenneth Mugambe, the Director Budget at the Ministry of Finance, during a breakfast budget meeting organized by the Uganda Revenue Authority.

Mugambe revealed that the government was spending approximately 100 billion Shillings annually on buying new cars, a practice that was depleting the country’s resources and reducing funds available for social services. The government operates a large fleet of vehicles, resulting in additional expenses for taxpayers, including fuel, repairs, and general wear and tear.

To address this issue, the government is considering the option of leasing cars instead of purchasing them, as the responsibility for maintenance and wear and tear would then lie with the owner rather than the government. Mugambe emphasized that this presents an opportunity for the private sector to step in and provide leasing services.

However, Mugambe noted that certain agencies may still be allowed to purchase cars, particularly those involved in donor projects that include vehicle acquisition as a component. He further outlined that a significant portion of the budget for the upcoming financial year would be allocated to development expenditure, with 50 percent earmarked for this purpose, while the remaining funds would be used for consumption.

The government’s decision aligns with a motion previously tabled in parliament by Kira municipality MP Ibrahim SSemujju Nganda, advocating for a review of vehicle provisions for leaders, civil servants, and politicians. Nganda proposed that except for key officials such as the President, Vice President, Speaker of Parliament, Deputy Speaker, Leader of the Opposition, Chief Justice, and Deputy Chief Justice, other leaders and civil servants should acquire loans to purchase their own vehicles instead of relying on government-provided vehicles. However, this proposal was rejected at the time.

Uganda’s budget for the period is projected to be 40.5 trillion Shillings, with only around half of that amount expected to be generated from local revenues. The remainder will be sourced from donors or through borrowing. State Minister for Finance, David Bahati, emphasized that the government’s strategy is to prioritize spending on areas that promote growth and empower Ugandans in their entrepreneurial pursuits.

By redirecting funds previously allocated for vehicle purchases, the Ugandan government aims to optimize resource allocation and ensure that financial resources are effectively utilized to support key areas of development and public welfare.

For any Opinions, breaking news, Exposes, story ideas, human interest articles or Exclusive inside Stories; email Uganda Daily on: [email protected]